Hawaii 2025 Regular Session

Hawaii Senate Bill SB1430 Compare Versions

Only one version of the bill is available at this time.

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1	1	THE SENATE S.B. NO. 1430 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII A BILL FOR AN ACT RELATING TO REGISTRATION TO SELL MANUFACTURED HEMP PRODUCTS. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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3	3	THE SENATE S.B. NO. 1430
4	4	THIRTY-THIRD LEGISLATURE, 2025
5	5	STATE OF HAWAII
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7	7	THE SENATE
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9	9	S.B. NO.
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13	13	THIRTY-THIRD LEGISLATURE, 2025
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17	17	STATE OF HAWAII
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31	31	A BILL FOR AN ACT
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37	37	RELATING TO REGISTRATION TO SELL MANUFACTURED HEMP PRODUCTS.
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43	43	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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47	47	SECTION 1. The legislature finds that hemp is a high-value crop that has the potential to bring significant and diverse revenues to Hawaii. Act 263, Session Laws of Hawaii 2023, established a Hawaii hemp task force jointly convened by the department of agriculture and the department of health to gather data and information to better understand hemp industry needs. The task force reported that most hemp-derived cannabinoid products purchased in Hawaii are primarily imported, non-compliant products, which, if unregulated, may pose health risks to Hawaii consumers. The proliferation of non-compliant hemp-derived cannabinoid products sold in Hawaii, both in local stores and online, has made enforcement of current laws difficult. Accordingly, the purpose of this Act is to create a system to register manufactured hemp product retailers and distributors. This registration system will enable the department of health to effectively monitor the sale of manufactured hemp products, identify non-compliant sellers, and trace adverse events back to specific retailers and distributors to quickly notify consumers that may be affected by non-compliant hemp-derived cannabinoid products. SECTION 2. Chapter 328G, Hawaii Revised Statues, is amended by adding one new section to be appropriately designated and to read as follows: "§328G- Application; renewals; suspension or revocation of certificates; exceptions. (a) No manufactured hemp product distributor or manufactured hemp product retailer shall sell manufactured hemp products except in direct in-person or online transactions. (b) Beginning January 1, 2026, no manufactured hemp product distributor or manufactured hemp product retailer shall sell or offer for sale manufactured hemp products without a certificate of registration issued by the department pursuant to this section. It shall be the responsibility of the manufactured hemp product distributor or manufactured hemp product retailer to confirm that a valid certificate of registration has been obtained and is in compliance with any and all laws and regulations. (c) A manufactured hemp product distributor or manufactured hemp product retailer that sells or offers for sale or intends to sell or offer for sale manufactured hemp products shall apply to the department to be registered and receive a certificate of registration on an application form designated by the department and pay an application fee of $50. (d) Any incomplete application shall be denied. An application that fails to contain all the information as required by the department shall be deemed incomplete. (e) After the department's receipt of a complete and accurate application form and payment of the application fee, the department shall list the manufactured hemp product distributor or manufactured hemp product retailer as a registrant on the registry and issue a certificate of registration. Whenever a certification of registration is defaced, destroyed, or lost, the department may issue a duplicate certificate of registration to the registrant for a fee of $10 per copy. (f) The department shall post on its website a current list of registrants on the registry. (g) The certificate of registration shall be renewed annually by receipt of a completed renewal application and payment of the annual renewal fee of $50. (h) All fees required under this section are non-transferable and non-refundable and shall be fully paid prior to the issuance of a new or renewed certificate of registration. (i) A certificate of registration issued under this section shall be displayed at all times in a conspicuous place at the place of business where the sale of manufactured hemp products is conducted and a digital reproduction of the certificate conspicuously shall be displayed on the website of a registrant conducting sales online. (j) A registrant shall allow any employee of the department, or any agent or third party authorized by the department, to enter at reasonable times upon any property where the registrant sells manufactured hemp products for the purposes of inspecting, sampling, or testing the manufactured hemp products, inspect equipment or facilities incident to the storage of manufactured hemp products, or review all records pertinent to manufactured hemp products. (k) The department may suspend or revoke a registrant's certificate of registration for failure to comply with this chapter and rules adopted under this chapter pursuant to the procedures set forth in section 328G-6. (l) Carriers or entities that ship goods shall not be subject to this section by reason of their receipt, carriage, holding, shipping, or delivery of manufactured hemp products in the usual course of business as carriers or entities that ship goods unless the carrier or the entity sells or offers for sale manufactured hemp products." SECTION 3. Section 328G-1, Hawaii Revised Statutes, is amended as follows: 1. By adding seven new definitions to be appropriately inserted and to read: ""Certificate of registration" means the certificate issued by the department authorizing the sale of manufactured hemp products by the registrant. "Consumer" means a person who is a member of the public, is not functioning in the capacity of an operator of a hemp processing facility, and does not process hemp biomass, produce manufactured hemp products, or offer manufactured hemp products for resale. "Manufactured hemp product distributor" means a person selling manufactured hemp products to manufactured hemp product retailer and includes its agents and employees. "Manufactured hemp product retailer" means a person selling manufactured hemp products to consumers and includes its agents and employees. "Registrant" means the holder of the certificate of registration. "Registry" means list of registrants maintained by the department of registered hemp product retailers or manufactured hemp product distributors. "Sale," "sell," or "selling", means offering any transactions, whether cash is actually paid therefor or not, of hemp, hemp biomass, crude extract or manufactured hemp products and includes resale and every act of selling that originates from any order that is placed or submitted in-person or by means of telephonic or other synchronous online communication methods, the mail, catalog, or digital application, the internet or other online service." 2. By amending the definition of "permit" to read: ""Permit" means the [certificate] document issued by the department attesting that the applicant is permitted to operate as a hemp processor." SECTION 4. Section 328G-6, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows: "(b) Any order issued under this chapter shall become final, unless not later than twenty days after the notice of order is served, the person or persons named therein request in writing a hearing before the director. Any penalty imposed, including the revocation of a permit[,] or suspension or revocation of a certificate of registration, shall become final, and any monetary penalty shall become due and payable twenty days after the order is served unless the person or persons named therein request in writing a hearing before the director. Whenever a hearing is requested, the penalty imposed, including permit revocation, or suspension or revocation of a certificate of registration, shall become final, and any monetary penalty shall become due and payable only upon completion of all review proceedings and the issuance of a final order confirming the penalty in whole or in part. Any hearing shall be conducted in accordance with chapter 91. (c) In any judicial proceeding to enforce an order issued by the department pursuant to this section, including but not limited to the recovery of administrative penalties imposed by order against a hemp processor[,] or registrant, the director may petition any court of appropriate jurisdiction for relief and need only show that: (1) Notice was given; (2) A hearing was held or the time granted for requesting a hearing has expired without such a request; (3) The administrative penalty was imposed [or], the hemp processor's permit was revoked[;], or the registrant's certificate of registration was suspended or revoked; and (4) The penalty remains unpaid or the hemp processor or the registrant continues to operate." SECTION 5. Section 328G-7, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows: "(b) Moneys in the Hawaii hemp processing special fund shall be used by department for the following purposes: (1) To establish and regulate a system of permitting hemp processors and the sale, holding, offering, or distributing for sale of crude extract and manufactured hemp products; (2) To establish and regulate a system for registering manufactured hemp product distributors and manufactured hemp product retailers to sell manufactured hemp products; [(2)] (3) To fund positions and operating costs authorized by the legislature; and [(3)] (4) For any other expenditure necessary, consistent with this chapter to implement the Hawaii hemp processing program." SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 7. This Act shall take effect on upon its approval. INTRODUCED BY: _____________________________ BY REQUEST
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49	49	SECTION 1. The legislature finds that hemp is a high-value crop that has the potential to bring significant and diverse revenues to Hawaii. Act 263, Session Laws of Hawaii 2023, established a Hawaii hemp task force jointly convened by the department of agriculture and the department of health to gather data and information to better understand hemp industry needs. The task force reported that most hemp-derived cannabinoid products purchased in Hawaii are primarily imported, non-compliant products, which, if unregulated, may pose health risks to Hawaii consumers. The proliferation of non-compliant hemp-derived cannabinoid products sold in Hawaii, both in local stores and online, has made enforcement of current laws difficult.
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51	51	Accordingly, the purpose of this Act is to create a system to register manufactured hemp product retailers and distributors. This registration system will enable the department of health to effectively monitor the sale of manufactured hemp products, identify non-compliant sellers, and trace adverse events back to specific retailers and distributors to quickly notify consumers that may be affected by non-compliant hemp-derived cannabinoid products.
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53	53	SECTION 2. Chapter 328G, Hawaii Revised Statues, is amended by adding one new section to be appropriately designated and to read as follows:
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55	55	"§328G- Application; renewals; suspension or revocation of certificates; exceptions. (a) No manufactured hemp product distributor or manufactured hemp product retailer shall sell manufactured hemp products except in direct in-person or online transactions.
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57	57	(b) Beginning January 1, 2026, no manufactured hemp product distributor or manufactured hemp product retailer shall sell or offer for sale manufactured hemp products without a certificate of registration issued by the department pursuant to this section. It shall be the responsibility of the manufactured hemp product distributor or manufactured hemp product retailer to confirm that a valid certificate of registration has been obtained and is in compliance with any and all laws and regulations.
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59	59	(c) A manufactured hemp product distributor or manufactured hemp product retailer that sells or offers for sale or intends to sell or offer for sale manufactured hemp products shall apply to the department to be registered and receive a certificate of registration on an application form designated by the department and pay an application fee of $50.
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61	61	(d) Any incomplete application shall be denied. An application that fails to contain all the information as required by the department shall be deemed incomplete.
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63	63	(e) After the department's receipt of a complete and accurate application form and payment of the application fee, the department shall list the manufactured hemp product distributor or manufactured hemp product retailer as a registrant on the registry and issue a certificate of registration. Whenever a certification of registration is defaced, destroyed, or lost, the department may issue a duplicate certificate of registration to the registrant for a fee of $10 per copy.
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65	65	(f) The department shall post on its website a current list of registrants on the registry.
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67	67	(g) The certificate of registration shall be renewed annually by receipt of a completed renewal application and payment of the annual renewal fee of $50.
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69	69	(h) All fees required under this section are non-transferable and non-refundable and shall be fully paid prior to the issuance of a new or renewed certificate of registration.
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71	71	(i) A certificate of registration issued under this section shall be displayed at all times in a conspicuous place at the place of business where the sale of manufactured hemp products is conducted and a digital reproduction of the certificate conspicuously shall be displayed on the website of a registrant conducting sales online.
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73	73	(j) A registrant shall allow any employee of the department, or any agent or third party authorized by the department, to enter at reasonable times upon any property where the registrant sells manufactured hemp products for the purposes of inspecting, sampling, or testing the manufactured hemp products, inspect equipment or facilities incident to the storage of manufactured hemp products, or review all records pertinent to manufactured hemp products.
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75	75	(k) The department may suspend or revoke a registrant's certificate of registration for failure to comply with this chapter and rules adopted under this chapter pursuant to the procedures set forth in section 328G-6.
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77	77	(l) Carriers or entities that ship goods shall not be subject to this section by reason of their receipt, carriage, holding, shipping, or delivery of manufactured hemp products in the usual course of business as carriers or entities that ship goods unless the carrier or the entity sells or offers for sale manufactured hemp products."
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79	79	SECTION 3. Section 328G-1, Hawaii Revised Statutes, is amended as follows:
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81	81	1. By adding seven new definitions to be appropriately inserted and to read:
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83	83	""Certificate of registration" means the certificate issued by the department authorizing the sale of manufactured hemp products by the registrant.
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85	85	"Consumer" means a person who is a member of the public, is not functioning in the capacity of an operator of a hemp processing facility, and does not process hemp biomass, produce manufactured hemp products, or offer manufactured hemp products for resale.
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87	87	"Manufactured hemp product distributor" means a person selling manufactured hemp products to manufactured hemp product retailer and includes its agents and employees.
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89	89	"Manufactured hemp product retailer" means a person selling manufactured hemp products to consumers and includes its agents and employees.
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91	91	"Registrant" means the holder of the certificate of registration.
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93	93	"Registry" means list of registrants maintained by the department of registered hemp product retailers or manufactured hemp product distributors.
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95	95	"Sale," "sell," or "selling", means offering any transactions, whether cash is actually paid therefor or not, of hemp, hemp biomass, crude extract or manufactured hemp products and includes resale and every act of selling that originates from any order that is placed or submitted in-person or by means of telephonic or other synchronous online communication methods, the mail, catalog, or digital application, the internet or other online service."
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97	97	2. By amending the definition of "permit" to read:
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99	99	""Permit" means the [certificate] document issued by the department attesting that the applicant is permitted to operate as a hemp processor."
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101	101	SECTION 4. Section 328G-6, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:
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103	103	"(b) Any order issued under this chapter shall become final, unless not later than twenty days after the notice of order is served, the person or persons named therein request in writing a hearing before the director. Any penalty imposed, including the revocation of a permit[,] or suspension or revocation of a certificate of registration, shall become final, and any monetary penalty shall become due and payable twenty days after the order is served unless the person or persons named therein request in writing a hearing before the director. Whenever a hearing is requested, the penalty imposed, including permit revocation, or suspension or revocation of a certificate of registration, shall become final, and any monetary penalty shall become due and payable only upon completion of all review proceedings and the issuance of a final order confirming the penalty in whole or in part. Any hearing shall be conducted in accordance with chapter 91.
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105	105	(c) In any judicial proceeding to enforce an order issued by the department pursuant to this section, including but not limited to the recovery of administrative penalties imposed by order against a hemp processor[,] or registrant, the director may petition any court of appropriate jurisdiction for relief and need only show that:
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107	107	(1) Notice was given;
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109	109	(2) A hearing was held or the time granted for requesting a hearing has expired without such a request;
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111	111	(3) The administrative penalty was imposed [or], the hemp processor's permit was revoked[;], or the registrant's certificate of registration was suspended or revoked; and
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113	113	(4) The penalty remains unpaid or the hemp processor or the registrant continues to operate."
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115	115	SECTION 5. Section 328G-7, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
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117	117	"(b) Moneys in the Hawaii hemp processing special fund shall be used by department for the following purposes:
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119	119	(1) To establish and regulate a system of permitting hemp processors and the sale, holding, offering, or distributing for sale of crude extract and manufactured hemp products;
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121	121	(2) To establish and regulate a system for registering manufactured hemp product distributors and manufactured hemp product retailers to sell manufactured hemp products;
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123	123	[(2)] (3) To fund positions and operating costs authorized by the legislature; and
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125	125	[(3)] (4) For any other expenditure necessary, consistent with this chapter to implement the Hawaii hemp processing program."
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127	127	SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
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129	129	SECTION 7. This Act shall take effect on upon its approval.
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133	133	INTRODUCED BY: _____________________________
134	134	BY REQUEST
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146	146	Report Title: DOH; Manufactured Hemp Products; Registration; Definitions Description: Requires manufactured hemp product distributors and manufactured hemp product retailers to register with the Department of Health to sell manufactured hemp products; requires the Department of Health to collect application fees and issue certificates of registration. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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154	154	Report Title:
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156	156	DOH; Manufactured Hemp Products; Registration; Definitions
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160	160	Description:
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162	162	Requires manufactured hemp product distributors and manufactured hemp product retailers to register with the Department of Health to sell manufactured hemp products; requires the Department of Health to collect application fees and issue certificates of registration.
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170	170	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.